Concentrated GARP

  • Additional attributes Small cap
  • Strategy Stocks
GARP stands for Growth at a Reasonable Price. My growth-oriented investment style focuses on fundamental analysis including cash ratios, liquidity ratios and margins. I will also invest in anticipation of potential mergers, spin-offs and perceived arbitrage opportunities.
My main focus is on buying growth-oriented businesses led by what I believe are strong management teams. I attempt to buy growth companies, as well as ones with cash-rich balance sheets. The companies I own also tend to have strategic competitive advantages and high barriers to entry within large target markets. At times I may target potential spin-offs and arbitrage opportunities as well.
My screening approach analyzes cash, cash relative to debt, assets relative to liabilities, liquidity and cash flow. Typical sources of data and company information include Barron’s, Yahoo! Finance, MSN Screener, local news, Seeking Alpha, Investopedia, BusinessWeek and Bloomberg.
Positions usually range from 5% to 20% of the portfolio. I typically will seek to sell positions for which I have a larger allocation.
I make decisions to close positions based on the performance, or lack thereof, of the company. If an abnormally large gain is achieved in a short period, the position may be sold. If a stock is grossly overvalued, it will also be sold.
My strategy may change if I believe that stocks are highly overvalued, or due to merger activity, regulatory issues, world events or potential arbitrage opportunities.



Month to date



Quarter to date



Year to date


Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 19.7%

    Best quarter

  • -29.8%

    Worst quarter

    • 1.5% fee
    • $10,000 min

Performance detail

Performance Portfolio inception Jan 20, 2010

as of Dec 02, 2016 Manager (net of fees ) S&P 500
Month-to-date -1.3% -0.3%
Quarter-to-date -8.0% 1.1%
Last 365 Days -2.6% 6.9%
Since inception (Annualized) -0.6% 10.0%
2016 (YTD) 3.3% 7.2%
2015 -18.1% -0.7%
2014 -12.0% 11.4%
2013 39.4% 29.6%
2012 40.2% 13.4%
2011 -34.1% -0.0%

Risk metrics Last 365 days

as of Dec 02, 2016 Manager (net of fees ) S&P 500
Volatility 20.6% 13.8%
Sharpe Ratio -0.15 0.47
Sortino Ratio -0.26 0.63
Maximum Drawdown -16.6% -12.6%
Value-at-risk (95%, 1 week) -4.8% -3.2%
vs. S&P 500
Information Ratio -0.63
Alpha -8.3%
Beta 1.01
R-Squared 0.47


  • Consumer, Non-cyclical
  • Communications
  • Financial
  • Industrial
  • Consumer, Cyclical

Top 5 securities

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Portfolio commentary

  1. Profile Picture Market riptides 29 November 2016

    2016 has been a year brimming with market shocks

  2. Profile Picture Bonds in turmoil 22 November 2016
  3. Profile Picture The great unshackling 15 November 2016
  4. Profile Picture Starbuck’s caffeinated profits 7 November 2016
  5. Profile Picture Earnings scorecard 2 November 2016
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Latest transactions Average trades per month 0.4

Executed Symbol Security Type Price
07/29/16 GPRO GoPro Inc Buy $12.74
12/15/15 H Hyatt Hotels Corp Buy $47.07
12/15/15 VIV Telefonica Brasil SA Buy $9.57
12/03/15 GPRO GoPro Inc Buy $19.82
11/19/15 DLB Dolby Laboratories Inc Sell $34.83
11/19/15 DGI DigitalGlobe Inc Sell $16.78
11/04/15 VIV Telefonica Brasil SA Sell $11.06
10/16/15 RMCF Rocky Mountain Chocolate Factory Inc Buy $11.41
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Important Information

  1. Past performance is no guarantee of future results.
  2. Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. Average client returns are calculated by Covestor and are composed of the asset-weighted daily average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, and earnings distributions, and reflect the deduction of Covestor advisory fees, brokerage and other commissions and expenses actually paid by clients.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. More information here.
  7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
  8. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
  9. Not all transactions listed will appear in accounts due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  10. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns exclude or are net of management fees, transaction costs and expenses.